The OPay's Invisible Layer Strategy
In a perfect internet market, marginal cost is zero for online solutions. That means, every internet delivered service should have a distribution cost of zero fee if markets were perfect. Of course, markets are not perfect, and that means we have to pay distribution costs for online solutions. The implication is clear: to win, your marginal cost must tend towards near-zero. To achieve that, you can unlock new strategies which OPay, a fintech company in Nigeria, used to scale: Invisible Layer Strategy.
The Invisible Layer Strategy is a strategy where a company builds a product utilizing critical infrastructure of another competing company, in the same product line, but finds a way to under-cut that company on cost of services to end users.
You cannot scale an internet business if you do not improve your marginal cost. Today, OPay has attained equilibrium. But its playbook remains viable across many sectors; read here.
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